Sentences with phrase «why consumption taxes»

Not exact matches

In terms of substitution effects, the major difference between our estimates and those from the US is that our data indicate that diet soft drinks are a substitute for sugar sweetened drinks, whereas US data suggest that diet soft drinks are a complement (as the price of sugar sweetened drinks goes up, consumption of diet drinks goes down).18 22 This may explain why a US tax on sugar sweetened drinks has been so heavily resisted, as a «double whammy» on sales of both diet soft drinks and sugar sweetened drinks would occur.18.

you keep asking why a tax would make a difference in fossil fuel consumption.

So why would the consumers reduce their consumption because of high taxes, but not because of high prices?

My understanding of why some say it doesn't is the argument that a tax cut is more effective if it benefits the poor / middle class because the poor / middle class will spend most of it on consumption (say groceries) rather than investment (say purchasing an extra rental property).